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Luxembourg's services market is a powerhouse, boasting a projected revenue of US$59.4 billion by 2028. This represents a 4.9% annual growth rate, fueled by factors such as:
Strong financial services sector
Growing demand for IT services and business process outsourcing
Favorable tax regime and business environment
Multilingual and highly skilled workforce
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The services sector accounts for over 80% of Luxembourg's GDP, highlighting its crucial role in the economy.
Government Invests in Services: Public Procurement in Luxembourg
The Luxembourg government is a key player in the services market, with a total expenditure of US$4.3 billion on services in 2022. This is expected to reach US$5.1 billion by 2028, representing a 3.6% annual increase.
The government's focus on digitalization, infrastructure development, and social services is driving the demand for services in these areas.
The Luxembourg government primarily procures the following services:
IT and telecommunication services: for infrastructure development, e-government solutions, and cybersecurity.
Construction and engineering services: for infrastructure projects like roads, bridges, and buildings.
Professional and consulting services: for strategy development, project management, and research.
Facility management and security services: for maintaining government buildings and ensuring public safety.
Social services: for education, healthcare, and social welfare programs.
Navigating the Luxembourg government procurement landscape involves understanding the key authorities:
Ministry of Finance: Oversees public finances and approves government budgets.
Public Procurement Directorate (DPML): Regulates and oversees government procurement processes.
Central Purchasing Body (CLD): Conducts centralized procurement for common goods and services.
Sector Ministries: Responsible for specific government functions and procurement within their respective areas.
Some of the top winners of Luxembourg government services procurement include:
Post Luxembourg: A leading provider of postal, financial, and logistics services.
PwC Luxembourg: A global consulting firm offering professional services.
Deloitte Luxembourg: A major audit and consulting firm.
KPMG Luxembourg: A global network of professional services firms.
Accenture Luxembourg: A leading IT consulting and outsourcing company.
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